Did Warren Buffett Cash a Check for A Penny?
Did Warren Buffett Cash a Check for A Penny? Someone once did an experiment where they sent a check for 1 cent to billionaires, like a dozen of them, to see whether or not they would cash it. I believe the two that did on the list were Bill Gates and Warren Buffett. Some may think this is a bit crazy, but guess what? I probably would have done the same thing! Money adds up, and in the case of both Warren Buffett and Bill gates, we have got to say that they both fully understand the benefits and the power of both momentum and compound interest. Some many say that it was not worth their time to deposit the penny, but I say otherwise, and in this blog post, I’ll prove it. And so, in this post, let’s answer the question of did Warren Buffett cash a check for a penny?
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Did Warren Buffett Cash a Check for a Penny?
Heck yeah he did, greedy old guy! No but in all seriousness, there is some logic to why he did this and it is actually somewhat smart. Now getting a penny in cash, like a physical penny is basically worthless because of how long it takes to convert it to your account. With this being said $0.01 in digital currency, meaning it is electronically in your bank account, is actually worth depositing. If I asked you to Venmo me $0.01 right now would you do it? NO. Because that would be ridiculous, just keep the money.
In the case of Warren Buffett, not depositing the penny would be just like him giving you one penny, and he does not want to do that. In his case, say he has a secretary that isn’t super busy, he can just say “hey Kristine can you deposit this for me with the real estate checks” and vooila, in one stroke of his voice, he has deposited the penny. After all, it all adds up! I would do the same.
Why Would You Cash A Check for a Penny When You Have A 12 Figure Net Worth?
YES. I mean if I am going through the mail and I am already holding a check for a penny, then it is probably fairly quick to just tell someone to deposit it for me. Or I could leave it on my secretary’s desk for her to take to the bank with the other checks. Honestly time wise it may not make sense but I would be too greedy to not cash it!
Why Warren Buffett is Smart to Do This, Dis-Proving The “Your Time is Worth More Than A Penny Argument”
If Warren Buffett cashed the check for a penny there is most definitely something to this. Maybe money compounds and adds up in more ways than we can really believe, we should heed the advice of Warren Buffett.
Final Thoughts on Did Warren Buffett Cash a Check for a Penny?
It’s like Warren Buffett said, the first rule of investing is to “never lose money.” And he’s absolutely right. Easier said than done, but in terms of not losing money, I have found that EARNING money is the best way to NOT LOSE money. So if a stranger gives you a check for a penny go ahead and deposit it, Warren Buffett would tell you to do so!
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